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Re: wing_walker post# 452

Sunday, 03/12/2006 12:51:57 PM

Sunday, March 12, 2006 12:51:57 PM

Post# of 4721
OT: Dear "Thin-Air" (Board also welcomed to read it)

Talking about “sexy” stocks, anything that has to do with Energy these days is a sexy (read red hot) stock. Further on, if the respective stock has even a marginal connection with renewable energy (as is the case here), in time it can become a “super-sexy” (read white hot) stock. For this stock, despite the good Y over Y, and Q over Q numbers, to sit at a Price/Sales ratio of only 0.77, shouldn’t make me feel a “desperado,” with my average (now) slightly below 0.022. If somehow (although hard to believe, IMO) it goes down even more, I’ll be there to pick up some more. That’s me, and that’s how “desperado” I am.

IMO, the price here was brought down by those over 90% traders that always seem to be on the wrong side of the fence. These people rather buy some “sexy” stocks, just because some newsletter tells them to, and seem never to learn that those sharks are dumping the shares on them at or near the upper end of a run up. On the other hand, they dump CKEI-type stocks at or near the bottom, just because some RB poster tells them to.

Talking about “sexy” alternative energy related penny stocks, please compare, for instance: CKEI, XSNX, and IHDR:

http://finance.yahoo.com/q/bc?t=1y&s=CKEI.OB&l=on&z=m&q=l&c=xsnx.ob%2C+ihdr.ob

I didn’t do a decent DD on IHDR (no revenue yet), but as someone who’s been heavily involved in developing many new renewable energy devices for some 30+ years R&D, wrote countless technical papers, and was teaching many engineering courses of same, and since PV solar cells R@D is my strong background, I can assure you that XSNX is a fake company, with no product as yet, no revenue, and a one man operation. Plus, from his resume, it’s clear the CEO (who's everything else as well) has no knowledge whatsoever about solar cells in general, and amorphous-Si solar cells in particular. Yet, I see the PPS is approaching $2/share. Being in the field, I receive tons of info on renewable energy. Somehow, last year I started to receive an unsolicited pseudo-newsletter almost daily (until I cancelled it) written by a self described energy guru (that in fact has no basic understanding of energy as a concept, let alone any details about various energy conversion devices). This individual is pumping this crap, like as there was no tomorrow, and purposely misleading (for instance he implies that the global solar cell market – some $12.2B in 2005 – is in fact the market within which this a-Si cells of this crap company operates, when in fact the whole a-Si market, of all those companies that already mass produce the a-Si cells, is below 4% of the global solar cells market). The more his poor victims buy this crap, the more intense his “promotional” efforts are, and this goes on for at least the last 6 months. This Jeff “whatever” guru will for sure ruin many people's finances by the time he decide to take on another assignment, and in the process makes many to believe that all renewable energy stocks are the same, which is far from the truth.

So, my dear friend, when you say I’m a “desperado” (afraid about my investment here), I can assure you that your concern is just “thin air.” No harm done, indeed.

PS: One more thing, dear “thin air.” I hope that (besides being rude) you are not arrogant enough to believe I wrote all the above to demonstrate to you I’m not a “desperado.” As a former educator, I still feel impulse to offer my help to people that solicit my help (as some do). So, I only wrote all the above, as a small educational tool for the benefit of those many posters that seem to need some help in (finally) picking their winning stocks. Some people fail to recognize they need help, but some even admit they do, and are not embarrassed to ask (at times) even silly questions. Plus, some might learn that being rude (as you were) does not pay off.

Mike

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